Yards Sued Over Claims Of Faulty Sub Valves

Northrop Grumman Newport News and General Dynamics Electric Boat should have caught problems at Hunt Valve, two whistleblowers contend.

Two whistleblowers are suing Northrop Grumman Newport News and General Dynamics Electric Boat, accusing the shipyards of failing in their duty to ensure the safety of key parts on their submarines.

Tina Marie Gonter and William Charles Gonter, who met while working as inspectors at Norfolk Naval Shipyard in Portsmouth, contend the two builders of nuclear-powered submarines for the U.S. Navy should have caught ongoing quality problems at Hunt Valve, of Salem, Ohio, a key maker of submarine valves.

Their suit accuses Hunt Valve of, among other things, knowingly selling valves that didn't meet the proper specifications, having non-qualified personnel -- including a janitor -- perform the required inspections, and deliberately falsifying numerous documents attesting to the valves' safety.

The failure of Electric Boat and Newport News inspectors, auditors and company officials to stop the problems at Hunt, the Gonters assert in the suit, shows "reckless indifference." By not ensuring the quality and safety of the valves aboard the subs, the two yards defrauded the government, the suit contends.

"Because Newport News Shipbuilding had at its disposal ample facts to detect and rectify Hunt Valve's fraud ... Newport News Shipbuilding is directly responsible for the non-conforming valves delivered to the United States," the lawsuit reads.

The suit makes an identical charge against Electric Boat.

The valves, ranging from the size of a desk to smaller than a soda can, are used in numerous places on subs. Some of the more critical areas include the pressure hull, high-pressure steam systems, high-pressure air and gas systems, and safety equipment.

"Once we saw what was going on and how bad it was, and saw the potential for a catastrophic event that could harm personnel and damage equipment, we could not have walked away from it," William Gonter said.

The yards allowed Hunt to add certification dates after the fact for inspections that were never done, the suit contends. Certain types of testing were dated after the parts were complete, the suit asserts, even though it was impossible to do the inspections after the parts were finished.

The accusation against Hunt, Electric Boat and Newport News, if found to have merit, could result in millions of dollars in damages against the companies. The suit asks Hunt and the two yards to pay the difference between what the government paid for the valves and what they're worth without proper quality assurance. No value was given.

The Gonters' suit, which also claims Hunt Valve wrongfully discharged them after they complained, is separate from an ongoing criminal investigation into high-ranking Hunt Valve officials -- a federal investigation that the Gonters' whistleblower complaint has spurred.

Wayne Aldrich, a former quality assurance manager at Hunt Valve, is to be sentenced today after pleading guilty in July to fraud and conspiracy to commit fraud. He reached a plea-bargain agreement with the Justice Department.

Larry Kelly, former vice president of Hunt's military division, pleaded guilty April 6 to federal fraud charges.

Tina Gonter began working at Hunt Valve in November 2000, and complained about practices in February 2001. Defense Department investigators asked her to wear a wire to record conversations with company officials.

Though the original lawsuit was filed in March of 2001, the lawsuit only became public -- and served to the defendants -- in April of this year. Under the process used to investigate false claims act cases, the Justice Department has been investigating whether it wanted to "intervene," or take the case as its own.

Although the Justice Department decided in favor of intervening in the civil case against Hunt Valve, in addition to the criminal action against company officials, it decided in March not to intervene against Newport News or Electric Boat.

That fact indicates the weakness of the case, asserted Neil Ruenzel, an Electric Boat spokesman. Both companies say they have cooperated with the government's investigation and deny the charges. They also say they will vigorously defend themselves against the lawsuit.

"The government's decision not to intervene against Electric Boat is a direct reflection of the fact that (the Gonters') allegations against Electric Boat lack merit," Ruenzel said. Newport News yard spokeswoman Jerri Fuller Dickseski also pointed to the government's decision not to intervene.

Ruenzel said a government investigation has shown that the valves pose no safety risk, while Dickseski said a government investigation "concluded with a decision by the Navy that the Hunt valves were acceptable for use on its ships."

Frederick M. Morgan Jr., the Ohio lawyer representing the Gonters, said the fact the government didn't join the case doesn't mean the government found the case weak.